The global carbon trading market has grown exponentially in recent years and is becoming increasingly active. The \"Greater China Carbon Trading Development Foresight Forum,\" recently held at the Eco Expo International, explored in depth how to integrate the development of carbon trading in Greater China.<\/p>\n\n\n\n
Jeff Huang, Managing Director of Intercontinental Exchange (ICE) Greater China, explained that carbon trading refers to the two main forms of \"cap and trade\" and \"carbon offsetting\" that allow developed countries and their companies to be exempt from emission reduction targets. \"Cap and trade\" was initially used in the US Acid Rain Program, where governments and intergovernmental organizations set caps, and companies that could not meet their caps could purchase them from other holders of surplus carbon credits. \"Carbon offsetting\" involves trading emission reductions generated through international cooperation on emission reduction programs, usually through futures trading. The power industry is a major contributor to carbon emissions in various countries.<\/p>\n\n\n\n
The global carbon trading volume is increasing exponentially every year. Currently, the more mature trading systems are the European Union Greenhouse Gas Emission Trading Scheme (EU ETS) in Europe and the Chicago Climate Exchange (CCX) in the United States. The Greater China region is still in its initial stage, with huge development potential. Chinese industry is constantly exploring how to use these financial instruments to help companies achieve the carbon emission reduction targets of China's 12th Five-Year Plan in terms of emission reduction and risk management.<\/p>\n\n\n\n
Shao Shiyang, Chairman of the IPPF China Committee, stated that carbon prices are primarily determined by the market. However, to prevent carbon prices from soaring and placing excessive cost pressure on regulated companies, regulatory agencies often set certain baseline prices. Once the carbon price exceeds this baseline, the regulatory agency will have the right to take measures to expand market supply and stabilize the carbon price. \"For example, the safety valve mechanism of the Regional Greenhouse Gas Initiative (RGGI) in the United States allows allowances to be increased to $7 per kilowatt-hour, thereby increasing the supply of allowances to stabilize the carbon price.\"<\/p>\n\n\n\n
Professor Lee Chien-ming of the Taiwan Carbon Emission Promotion Association stated that the carbon trading system is cost-effective and has become one of the policy tools for reducing greenhouse gas emissions globally. \"The latest World Bank report indicates that the total value of the carbon market grew by 11% last year, reaching US$176 billion, with trading volume reaching a new high of 10.3 billion tons of carbon dioxide.\"<\/p>\n\n\n\n
Currently, mainland China already has carbon exchanges, such as the Shanghai Environment and Energy Exchange, the Beijing Environment Exchange, and the Tianjin Emissions Exchange. Li Jianming stated that Asian regions such as mainland China, Taiwan, Japan, South Korea, and Thailand have all actively promoted carbon trading systems. If these can be integrated into a Greater China carbon trading market in the future, it will improve the overall efficiency of the carbon market and allow for greater control over global carbon pricing. He suggested that pilot carbon markets could be established in Guangdong, Hong Kong, and Taiwan to serve as a demonstration.<\/p>\n\n\n\n
Other speakers included Ms. Christine Loo, Under Secretary for the Environment of the Hong Kong SAR Government; Mr. Zhuang Ning, President of the Sustainable Technology Research and Development Foundation; and Mr. Li Zhengxi, Chairman of Guangzhou Exchange Group Limited. This year's exhibition, themed \"Environmental Technology: Creating a Low-Carbon Economy,\" attracted 270 environmental companies from 14 countries and regions.<\/p>\n\n\n\n